Question 21 test your algebraic skills. 21. (10 points) Below is the generic equation for Present Value of multiple cash flows: CFN (1r) (1+r)2 (1N Which means the following specific cases for annuities and perpetuities: PMT +-+ PMT PMT PMT (Eq. la) Eq. 2a) (1+ry+ (Eq 3a) (Eq. 4a) Use your Math skills in time series, go step by step to show how you derive (lb) from (la), (2b) from (2a), (3b) PV (Ordinary Annuity) = 0 + PV (Ordinary Due) PV (Ordinary Perpetulity) - anPNT PV (Perpetuity Due) -PMT PMT PMT PMT (1+r (1 r)2 PMT PMT (1+r) PMT PMT (1+r)N-1 PMT = , PMT PMT PMT PMT PMT from 3a), and (4b) from (4a) PV (Ordinary Annuity) -PMT+r)N PV (Annuity Due) = PMT * (1+ r) * --(t+r)N PV (Ordinary Perpetuity) PV (Perpetuity Due,--* (1+r) (Eq. Ib) (Eq. 2b) (Eq. 3b) (Eq. 4b) PMT PMT